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Holiday pay rights for temporary workers

Claire Leigh
paid

By the end of 2016, the Office for National Statistics reported an eight per-cent increase in the number of temporary workers in the UK, bringing the total up to 850,000. Many temporary workers don’t know that they are entitled to holiday pay, or how to calculate the amount of paid holiday they are owed. Contributor Claire Leigh, Managing Director – Brampton Recruitment.

Here Claire Leigh, managing director of Staffordshire and Cheshire based Brampton Recruitment, shares her expertise on holiday pay and how temporary workers can ensure they receive what they are entitled to. Temporary workers have a contract with an agency, but work on a temporary basis for an employer. This differentiates them from full-time employees and the self-employed.

The Agency Worker’s Regulations (2010) which details a worker’s rights, state that all temporary workers are entitled to a minimum of 28 days holiday a year, pro rata. As temporary workers may not have consistent hours, many do not understand how to calculate their holiday pay and entitlement. Holiday pay is accrued at a rate of 12.07 per cent of gross pay, therefore it is important that workers keep a detailed record of their earnings.

To put this into context, if a temporary worker is paid £7.50 per hour they will accrue holiday pay at the rate of just over 90p per hour. Keeping a record of how many hours they have worked may also be useful for temporary workers, but is not essential for calculating holiday pay.

Twelve weeks
Although holiday pay begins accruing immediately, after twelve weeks a temporary worker is entitled to the same working conditions and basic pay, or to be paid within the same salary bracket as a permanent member of staff doing comparable work. In terms of holiday pay, this means if permanent workers are entitled to more than the minimum of 28 days paid holiday, a temporary worker should receive the same if they have been working for more than twelve weeks.

However, employer benefits which are calculated through a payroll system, such as healthcare might not be offered to a temporary member of staff. After twelve weeks if a temporary worker is with the same agency they will be enrolled onto an auto enrolment pension.

Help and advice
Recruitment agencies should be the first point of contact for any temporary workers concerned or confused about holiday pay or benefits. At Brampton Recruitment, we explain these rights upon registration and again upon placing a candidate in a role.  Temporary workers who have found their role through Brampton Recruitment will have this information in writing in a new starter pack, however we encourage anybody registered with us to get in contact for further advice if it is required.

Alternatively, the Advisory, Conciliation and Arbitration Service (ACAS) provides advice on all areas of employment law, on its website and helpline. As more people are turning to temporary work, it is essential that this growing pool of workers are aware of their rights. Although legislation can be confusing, help is available to ensure temporary workers fully understand their entitlement to paid holiday and other benefits.